January 29 2008.

Kawasaki Heavy Industries Ltd.'sgroup operating profit for the April-December term rose 28% year on year to about 57 billion yen, a record for the period.

The motorcycle business struggled due to an economic slowdown in North America, but the gas turbine and shipbuilding operations were strong. Profitability at the industrial plant division improved sharply thanks to its decision to screen orders more rigorously and focus on the types of projects it is good at.

Sales for the period appear to have climbed 8% to slightly more than 1.08 trillion yen. Sales of railway cars fell following strong growth in China and the U.S. the previous year, but jet engine sales to Boeing Co. were solid.

Pretax profit is believed to have jumped 25% to slightly more than 45 billion yen. Net profit probably increased 17% to around 27 billion yen.

For the fiscal year ending March 31, Kawasaki Heavy will likely post group sales of 1.52 trillion yen, a 6% increase from a year earlier. Operating profit is expected to grow 4% to 72 billion yen, in line with the company's existing projection.

Source: The Nikkei